German travel and tourism company TUI is exiting Castelfalfi, its luxury resort in Tuscany's hidden hills south of Florence, following approximately $350 million in investment that never translated into commercial success for the property.
TUI, which acquired the historic castle complex in 2007 and spent a decade restoring the medieval Borgo, building villas and opening a five-star hotel under its TUI Blue brand in 2017, sold the resort in May 2021 as part of a broader strategy to reduce capital tied up in its own real estate holdings. The buyer was Incorp Holdings, a company linked to the family of Indian-born billionaire Sri Prakash Lohia.
Lohia, born in 1952 in Kalkutta, relocated to Indonesia in 1973 and founded Indorama Synthetics, which expanded from textiles and petrochemicals into a multi-billion-dollar industrial conglomerate. He is married to the sister of Lakshmi Mittal, the steel magnate and chairman of ArcelorMittal.
Castelfalfi sits on 1,100 hectares in the municipality of Montaione, roughly an hour's drive southwest of Florence and equidistant from Pisa. First documented in 754 as Castrum Faolfi, the fortified settlement was later rebuilt as a Renaissance residence by the Gaetani family following their marriage into the Medici dynasty. By the 20th century, local women had been processing tobacco at a surviving factory on the grounds, and the village declined as younger residents moved to cities.
The resort reopened in 2024 under the new owners with 146 rooms, a spa from Thai brand RAKxa, and a 307-square-metre penthouse suite designed by Florentine fashion entrepreneur Stefano Ricci.
Financial terms of the sale and subsequent renovation investment were not disclosed.
At the resort, an estimated 25 hectares are cultivated organically for wine, more than half planted to Sangiovese and harvested by hand. Annual production reaches approximately 80,000 bottles. The property abandoned its Chianti appellation in 2019 in favour of the IGT classification, citing insufficient margins under the generic designation, with winemaking overseen by Italian oenologist Emiliano Falsini, who previously worked with Robert Mondavi in California and New Zealand's Villa Maria Estate.
The flagship wine, Castelfalfi 2021—a blend of 50% Cabernet Sauvignon, 40% Merlot and 10% Petit Verdot aged two years in equal parts barrique and amphora—is produced only in strong vintages at roughly 1,200 bottles per year and retails for €145 per bottle.
Guest demographics are reported to skew heavily toward American, Canadian and Asian travellers, alongside a growing segment of younger Italians from Milan and Rome.
